TIDMZEN
RNS Number : 0062E
Zenith Energy Ltd
15 October 2018
October 15, 2018
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014 ("MAR"). Upon
publication of this announcement via a regulatory information
service ("RIS"), the inside information contained in this document
is now considered to be in the public domain.
ZENITH ENERGY LTD.
("Zenith" or the "Company")
Commencement of Operations in Well C-37, Jafarli Field
Zenith Energy Ltd. ("Zenith" or the "Company") (LSE: ZEN; TSX.V:
ZEE), the dual listed international oil & gas production
company operating the largest onshore oilfield in Azerbaijan, is
pleased to announce that it is preparing to commence drilling
operations, having finalised a programme to deepen well C-37 in the
Jafarli field. This has been based on a series of in-depth
geological investigations, including analysis of 2D and 3D seismic
lines, which have evidenced a highly prospective, unexploited
structure comprised of Upper Cretaceous carbonates formations.
As announced on August 13, 2018, the Company has completed two
comprehensive geological studies which have offered a clear
overview of the potential drilling opportunities located within the
Company's Azerbaijan asset. Specifically, the study performed in
relation to the Muradkhanli and Jafarli fields identified a new,
previously unexplored, Mesozoic carbonate prospect running across
the two fields beginning from the south-western flank of the
Muradkhanli oilfield. In addition, the study also provided a modern
re-evaluation of the Eocene age reservoir levels comprised of
sandstones, marly limestones and volcanic facies.
Drilling activities in well C-37, Jafarli Field
The Company's operational team plans to divide drilling
activities in two phases. Initially, well C-37's total depth, 3,987
metres, will be deepened by 15-20 metres into the Middle Eocene
formation and a production test will be performed. The Company's
geological and reservoir investigations have indicated that the
Middle Eocene formation in this well may hold significant oil
reserves. This has been supported by the fact that an adjacent
well, C-22, achieved a sizeable rate of production from the
interval between 3,902-4,014 metres.
In the event of negative results from the first Middle Eocene
target zone, Zenith will proceed with deepening the well by 200-250
metres to test the Upper Cretaceous formation.
Well C-37 Key Facts
- Drilled in 2008 by SOCAR to a total depth of 3,987 meters
- Currently produces at a rate of approximately 5 bopd following
the installation of an electrical submersible pump
- Top of Upper Eocene 3,510 meters
- Top of Middle Eocene 3,935 meters
- Top of productive zone 3,925 meters
- An adjacent well, C-22, achieved highly significant production
from the Middle Eocene formation
Beginning of Operations in Well C-37
The Company is mobilising its A-80 workover rig to the C-37 well
location in order to perform preparatory work for the beginning of
drilling activities. These activities will include pulling the
electrical submersible pump out of hole and subsequently running in
the hole with a scraper to the production casing shoe at a depth of
3,904 metres, as well as performing a series of well investigations
by wireline.
The Company will provide an update once the preparatory work is
concluded and a 180-ton rig, contracted from a local service
company, is mobilised to the well location in order to commence
drilling activities.
Zardab Field Operational Update
The Company has decided to prioritise well deepening operations
in well C-37 following recent geological and reservoir studies
which have confirmed the significant potential for oil production
with less complex operations than in Z-21 due to the better
condition of the well and the improved reliability of available
well data on account of it being drilled in 2008.
As announced on May 18, 2018, the fist operational challenge in
Z-21 is the fishing out of 166 meters of 2 3/8" tubing from the
wellbore due to an undocumented change in the tubing diameter.
The Company intends to move the 180-ton rig to Z-21 in the
Zardab field once operations in well C-37 are successfully
completed.
Appointment of Workover and Drilling Manager
The Company is pleased to announce that it has appointed Mr. Ion
Tica as Workover and Drilling Manager of Zenith Aran, its
fully-owned Azerbaijan subsidiary, effective today.
Mr. Tica is a well operations and engineering executive with
over 28 years of international experience in drilling and heavy
workover operations. He joins the Company from the Arawak Energy
group where he spent more than 10 years working in Azerbaijan and
Kazakhstan. He previously worked for 17 years for OMV Petrom in
Romania and Kazakhstan in various technical and management
positions.
The Company has ended its working relationship with Mr. David
Sadoway, announced on July 16, 2018, due to health reasons.
Andrea Cattaneo, Chief Executive Officer, commented:
"I am pleased that we are now in a position to regain momentum
with the resumption of intensive operational activities that have
the potential to achieve concrete success. I am also delighted to
welcome Ion to Zenith at an important time for the Company
operationally. We have been through a progressive learning curve,
which has included some operational challenges, but at the same
time has resulted in an increased understanding of the reservoirs
and geology of our asset, as well as a substantive verification of
historical well data to the fullest extent possible.
I am excited about our drilling activities in the Upper
Cretaceous formation. This is a highly prospective formation which
remains significantly unexplored in onshore Azerbaijan. This will
be the primary target zone of our drilling programme that we plan
to begin following the arrival of the BD-260 drilling rig."
For further information please contact:
Zenith Energy Ltd.
Andrea Cattaneo
Chief Executive Officer
E-mail: info@zenithenergy.ca
Tel: +1 (587) 315 9031
Vigo Communications - PR Adviser
Patrick d'Ancona
Chris McMahon
Kate Rogucheva
Tel: +44 (0) 20 7830 9700
Daniel Stewart & Company Plc - (Joint Broker)
Robert Emmet- Corporate Broking
Tel: + 44 (0) 207 776 6550
Optiva Securities - (Joint Broker)
Christian Dennis
Tel: + 44 (0) 203 137 1903
Allenby Capital Limited - (Financial Adviser)
Nick Harriss
Nick Athanas
Tel: + 44 (0) 203 328 5656
Notes to Editors:
Zenith Energy Ltd. is an international oil and gas production
company, dual listed on the TSX Venture Exchange and London Stock
Exchange.
The Company operates the largest onshore oilfield in Azerbaijan
following the signing of a 25-year REDPSA, (Rehabilitation,
Exploration, Development and Production Sharing Agreement), with
SOCAR, State Oil Company of the Azerbaijan Republic, in 2016.
The Company's primary focus is the development of its Azerbaijan
operations by leveraging its technical expertise and financial
resources to maximise low-cost oil production via a systematic
field rehabilitation programme intended to achieve significantly
increased revenue. Zenith also operates, or has working interests
in, a number of natural gas production concessions in Italy. The
Company's Italian operations produce natural gas, natural gas
condensate and electricity.
Zenith's development strategy is to identify and rapidly seize
value-accretive hydrocarbon production opportunities in the onshore
oil & gas sector. The Company's Board of Directors and senior
management team have the experience and technical expertise to
develop the Company successfully.
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London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
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contact rns@lseg.com or visit www.rns.com.
END
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